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QUESTION 5 Partially correct Mark 76.00 out of 89.00 Variances, Entries, and Income Statement Flag question A summary of Glendale Company's manufacturing variance report for May 2016 follows: Total Standard Costs (9,200 units) Actual Costs (9,200 units) Variances Direct material Direct labor Variable overhead Fixed overhead $47,840 $52,430 $4,590 U 220,800 220,100 700 F 51,060 50,550 510 F 9,660 9,660 $329,360 $332,740 $3,380 U Standard material cost per unit of product is 0.5 pounds at $10.40 per pound, and standard direct labor cost is 1.50 hours at $16.00 per hour. The total actual materials cost represents 4,900 pounds purchased at $10.70 per pound. Total actual labor cost represents 14,200 hours at $15.50 per hour. According to standards, variable overhead rate is applied at $3.70 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 52,430 Split cost: $ 50,960 Standard cost: $ 47,840 Materials price $ 1,470 U Materials efficiency $ 3,120 U Inhar Vavinnan

QUESTION 5 Partially correct Mark 76.00 out of 89.00 Variances, Entries, and Income Statement Flag question A summary of Glendale Company's manufacturing variance report for May 2016 follows: Total Standard Costs (9,200 units) Actual Costs (9,200 units) Variances Direct material Direct labor Variable overhead Fixed overhead $47,840 $52,430 $4,590 U 220,800 220,100 700 F 51,060 50,550 510 F 9,660 9,660 $329,360 $332,740 $3,380 U Standard material cost per unit of product is 0.5 pounds at $10.40 per pound, and standard direct labor cost is 1.50 hours at $16.00 per hour. The total actual materials cost represents 4,900 pounds purchased at $10.70 per pound. Total actual labor cost represents 14,200 hours at $15.50 per hour. According to standards, variable overhead rate is applied at $3.70 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 52,430 Split cost: $ 50,960 Standard cost: $ 47,840 Materials price $ 1,470 U Materials efficiency $ 3,120 U Inhar Vavinnan

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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QUESTION 5 Partially correct Mark 76.00 out of 89.00 Variances, Entries, and Income Statement Flag question A summary of Glendale Company's manufacturing variance report for May 2016 follows: Total Standard Costs (9,200 units) Actual Costs (9,200 units) Variances Direct material Direct labor Variable overhead Fixed overhead $47,840 $52,430 $4,590 U 220,800 220,100 700 F 51,060 50,550 510 F 9,660 9,660 $329,360 $332,740 $3,380 U Standard material cost per unit of product is 0.5 pounds at $10.40 per pound, and standard direct labor cost is 1.50 hours at $16.00 per hour. The total actual materials cost represents 4,900 pounds purchased at $10.70 per pound. Total actual labor cost represents 14,200 hours at $15.50 per hour. According to standards, variable overhead rate is applied at $3.70 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 52,430 Split cost: $ 50,960 Standard cost: $ 47,840 Materials price $ 1,470 U Materials efficiency $ 3,120 U Inhar Vavinnan
Transcribed Image Text:QUESTION 5 Partially correct Mark 76.00 out of 89.00 Variances, Entries, and Income Statement Flag question A summary of Glendale Company's manufacturing variance report for May 2016 follows: Total Standard Costs (9,200 units) Actual Costs (9,200 units) Variances Direct material Direct labor Variable overhead Fixed overhead $47,840 $52,430 $4,590 U 220,800 220,100 700 F 51,060 50,550 510 F 9,660 9,660 $329,360 $332,740 $3,380 U Standard material cost per unit of product is 0.5 pounds at $10.40 per pound, and standard direct labor cost is 1.50 hours at $16.00 per hour. The total actual materials cost represents 4,900 pounds purchased at $10.70 per pound. Total actual labor cost represents 14,200 hours at $15.50 per hour. According to standards, variable overhead rate is applied at $3.70 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work in progress inventory. a. Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ 52,430 Split cost: $ 50,960 Standard cost: $ 47,840 Materials price $ 1,470 U Materials efficiency $ 3,120 U Inhar Vavinnan
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